Elite Realty acts as an agent in buying, selling, renting, and managing real estate. The unadjusted trial balance

A summary listing of the titles and balances of accounts in the ledger prior to the posting of adjusting entries.

on March 31, 2016, follows:

Elite Realty

UNADJUSTED TRIAL BALANCE

March 31, 2016

	ACCOUNT TITLE	DEBIT	CREDIT
1	Cash	25,700.00
2	Accounts Receivable	61,300.00
3	Prepaid Insurance	3,400.00
4	Office Supplies	2,400.00
5	Land
6	Accounts Payable		12,300.00
7	Unearned Rent
8	Notes Payable
9	Common Stock		10,000.00
10	Retained Earnings		37,600.00
11	Dividends	2,400.00
12	Fees Earned		241,000.00
13	Salary and Commission Expense	144,800.00
14	Rent Expense	34,000.00
15	Advertising Expense	17,300.00
16	Automobile Expense	5,800.00
17	Miscellaneous Expense	3,800.00
18	Totals	300,900.00	300,900.00

The following business transactions were completed by Elite Realty during April 2016. Enter the transactions through the 23rd on Page 18 of the two-column journal:

Apr.	1	Paid rent on office for month, $6,500.
	2	Purchased office supplies on account, $2,500.
	5	Paid insurance premiums, $6,400.
	10	Received cash from clients on account, $52,200.
	15	Purchased land for a future building site for $182,000, paying $24,000 in cash and giving a note payable for the remainder.
	17	Paid creditors on account, $6,500
	20	Returned a portion of the office supplies purchased on April 2, receiving full credit for their cost, $320.
	23	Paid advertising expense, $4,500.

Enter the remaining transactions on Page 19 of the two-column journal:

Apr.	27	Discovered an error in computing a commission; received cash from the salesperson for the overpayment, $2,400.
	28	Paid automobile expense, $1,500.
	29	Paid miscellaneous expenses, $1,500.
	30	Recorded revenue earned and billed to clients during the month, $54,000.
	30	Paid salaries and commissions for the month, $13,500.
	30	Paid dividends, $4,000.
	30	Land purchased on April 15 used by local merchants association as a parking lot in May and June, during a street rebuilding program; received advance payment of $9,200.

	Required:
1.	Record the April 1, 2016, balance of each account in the appropriate balance column of a four-column account An accounting forms that is used to record the increases and decreases in each financial statement item. , type Balance in the item section, and select a check mark in the Posting Reference column.
2.	Journalize The process of recording a transaction in the journal. the transactions for April in a two-column journal The initial record in which the effects of a transaction are recorded. beginning on Page 18. Refer to the Chart of Accounts for exact wording of account titles.
3.	Post to the ledger A group of accounts for a business. , extending the account balance to the appropriate balance column after each posting. Post in chronological order. For transactions occurring on the same day, post in the order presented in the instructions. Insert the appropriate posting references in both the journal and the ledger as each item is posted.
4.	Prepare an unadjusted trial balance A summary listing of the titles and balances of accounts in the ledger prior to the posting of adjusting entries. of the ledger as of April 30, 2016.
5.	Assume that the April 30 transaction for salaries and commissions should have been $15,300. (a) Why did the unadjusted trial balance in (4) balance? (b) Journalize the correcting entry on April 30. Use page 20. (Note: You will not be required to post this entry to the ledger at this time.) (c) Is this error a transposition An error in which the order of the digits is changed, such as writing $542 as $452 or $524. or slide The initial record in which the effects of a transaction are recorded. ?

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Chart of Accounts

CHART OF ACCOUNTS

Elite Realty

General Ledger

	ASSETS
11	Cash
12	Accounts Receivable
13	Prepaid Insurance
14	Office Supplies
16	Land

	LIABILITIES
21	Accounts Payable
22	Unearned Rent
23	Notes Payable

	EQUITY
31	Common Stock
32	Retained Earnings
33	Dividends

	REVENUE
41	Fees Earned

	EXPENSES
51	Salary and Commission Expense
52	Rent Expense
53	Advertising Expense
54	Automobile Expense
59	Miscellaneous Expense

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Journal

Shaded cells have feedback.

2. Journalize

The process of recording a transaction in the journal.

the transactions for April in a two-column journal

The initial record in which the effects of a transaction are recorded.

beginning on Page 18. Refer to the Chart of Accounts for exact wording of account titles.

All transactions on this page must be entered (except for post ref(s)) before you will receive Check My Work feedback.

PAGE 18PAGE 19

JOURNAL

Score: 164/434

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT
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2
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5
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16
17

^ I tried to answer a few

Record the April 1, 2016, balance of each account in the appropriate balance column of a four-column

account

An accounting forms that is used to record the increases and decreases in each financial statement item.

, type Balance in the item section, and select a check mark in the Posting Reference column. 3. Post to the ledger

A group of accounts for a business.

, extending the account balance to the appropriate balance column after each posting. Post in chronological order. For transactions occurring on the same day, post in the order presented in the instructions. Insert the appropriate posting references in both the journal and the ledger as each item is posted.

Question not attempted.

LEDGER

Score: 0/510

Account: Cash11Account No.

	DATE	ITEM	POST. REF.	DEBIT	CREDIT	BALANCE
						DEBIT	CREDIT
1
2
3
4
5
6
7
8
9
10
11
12
13

Solution

Account: Cash11Account No.

	DATE	ITEM	POST. REF.	DEBIT	CREDIT	BALANCE
						DEBIT	CREDIT
1
2
3
4
5
6
7
8
9
10
11
12
13

Account: Accounts Receivable12Account No.

	DATE	ITEM	POST. REF.	DEBIT	CREDIT	BALANCE
						DEBIT	CREDIT
1
2
3

Solution

Account: Accounts Receivable12Account No.

	DATE	ITEM	POST. REF.	DEBIT	CREDIT	BALANCE
						DEBIT	CREDIT
1
2
3

Account: Prepaid Insurance13Account No.

	DATE	ITEM	POST. REF.	DEBIT	CREDIT	BALANCE
						DEBIT	CREDIT
1
2

Solution

Account: Prepaid Insurance13Account No.

	DATE	ITEM	POST. REF.	DEBIT	CREDIT	BALANCE
						DEBIT	CREDIT
1
2

Account: Office Supplies14Account No.

	DATE	ITEM	POST. REF.	DEBIT	CREDIT	BALANCE
						DEBIT	CREDIT
1
2
3

Solution

Account: Office Supplies14Account No.

	DATE	ITEM	POST. REF.	DEBIT	CREDIT	BALANCE
						DEBIT	CREDIT
1
2
3

Account: Land16Account No.

	DATE	ITEM	POST. REF.	DEBIT	CREDIT	BALANCE
						DEBIT	CREDIT
1

Solution

Account: Land16Account No.

	DATE	ITEM	POST. REF.	DEBIT	CREDIT	BALANCE
						DEBIT	CREDIT
1

Account: Accounts Payable21Account No.

	DATE	ITEM	POST. REF.	DEBIT	CREDIT	BALANCE
						DEBIT	CREDIT
1
2
3
4

Solution

Account: Accounts Payable21Account No.

	DATE	ITEM	POST. REF.	DEBIT	CREDIT	BALANCE
						DEBIT	CREDIT
1
2
3
4

Account: Unearned Rent22Account No.

	DATE	ITEM	POST. REF.	DEBIT	CREDIT	BALANCE
						DEBIT	CREDIT
1

Solution

Account: Unearned Rent22Account No.

	DATE	ITEM	POST. REF.	DEBIT	CREDIT	BALANCE
						DEBIT	CREDIT
1

Account: Notes Payable23Account No.

	DATE	ITEM	POST. REF.	DEBIT	CREDIT	BALANCE
						DEBIT	CREDIT
1

Solution

Account: Notes Payable23Account No.

	DATE	ITEM	POST. REF.	DEBIT	CREDIT	BALANCE
						DEBIT	CREDIT
1

Account: Common Stock31Account No.

	DATE	ITEM	POST. REF.	DEBIT	CREDIT	BALANCE
						DEBIT	CREDIT
1

Solution

Account: Common Stock31Account No.

	DATE	ITEM	POST. REF.	DEBIT	CREDIT	BALANCE
						DEBIT	CREDIT
1

Account: Retained Earnings32Account No.

	DATE	ITEM	POST. REF.	DEBIT	CREDIT	BALANCE
						DEBIT	CREDIT
1

Solution

Account: Retained Earnings32Account No.

	DATE	ITEM	POST. REF.	DEBIT	CREDIT	BALANCE
						DEBIT	CREDIT
1

Account: Dividends33Account No.

	DATE	ITEM	POST. REF.	DEBIT	CREDIT	BALANCE
						DEBIT	CREDIT
1
2

Solution

Account: Dividends33Account No.

	DATE	ITEM	POST. REF.	DEBIT	CREDIT	BALANCE
						DEBIT	CREDIT
1
2

Account: Fees Earned41Account No.

	DATE	ITEM	POST. REF.	DEBIT	CREDIT	BALANCE
						DEBIT	CREDIT
1
2

Solution

Account: Fees Earned41Account No.

	DATE	ITEM	POST. REF.	DEBIT	CREDIT	BALANCE
						DEBIT	CREDIT
1
2

Account: Salary and Commission Expense51Account No.

	DATE	ITEM	POST. REF.	DEBIT	CREDIT	BALANCE
						DEBIT	CREDIT
1
2
3

Solution

Account: Salary and Commission Expense51Account No.

	DATE	ITEM	POST. REF.	DEBIT	CREDIT	BALANCE
						DEBIT	CREDIT
1
2
3

Account: Rent Expense52Account No.

	DATE	ITEM	POST. REF.	DEBIT	CREDIT	BALANCE
						DEBIT	CREDIT
1
2

Solution

Account: Rent Expense52Account No.

	DATE	ITEM	POST. REF.	DEBIT	CREDIT	BALANCE
						DEBIT	CREDIT
1
2

Account: Advertising Expense53Account No.

	DATE	ITEM	POST. REF.	DEBIT	CREDIT	BALANCE
						DEBIT	CREDIT
1
2

Solution

Account: Advertising Expense53Account No.

	DATE	ITEM	POST. REF.	DEBIT	CREDIT	BALANCE
						DEBIT	CREDIT
1
2

Account: Automobile Expense54Account No.

	DATE	ITEM	POST. REF.	DEBIT	CREDIT	BALANCE
						DEBIT	CREDIT
1
2

Solution

Account: Automobile Expense54Account No.

	DATE	ITEM	POST. REF.	DEBIT	CREDIT	BALANCE
						DEBIT	CREDIT
1
2

Account: Miscellaneous Expense59Account No.

	DATE	ITEM	POST. REF.	DEBIT	CREDIT	BALANCE
						DEBIT	CREDIT
1
2

Solution

Account: Miscellaneous Expense59Account No.

	DATE	ITEM	POST. REF.	DEBIT	CREDIT	BALANCE
						DEBIT	CREDIT
1
2

Points:

0 / 180

Feedback

Check My Work

1. The ending balance for accounts on March 31 will be the beginning balance on April 1.

3. See the illustration in

(See Exhibit 4)

in the text. The 4-column accounts ledger is a more formal presentation of the T accounts. The Posting Reference column should have the page number from the journal where the transaction is found or a check for beginning balances. The debits and credits for each journal entry are posted to the accounts in the order in which they occur in the journal. After each entry, subtotal the 4-column ledger, making sure to maintain the correct normal balance and double-checking any non-normal balances to see if they are valid or possible.

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Unadjusted Trial Balance

Shaded cells have feedback.

4. Prepare an unadjusted trial balance

A summary listing of the titles and balances of accounts in the ledger prior to the posting of adjusting entries.

of the ledger as of April 30, 2016.

Question not attempted.

Elite Realty

UNADJUSTED TRIAL BALANCE

Score: 0/71

April 30, 2016

	ACCOUNT TITLE	DEBIT	CREDIT
1	Cash
2	Accounts Receivable
3	Prepaid Insurance
4	Office Supplies
5	Land
6	Accounts Payable
7	Unearned Rent
8	Notes Payable
9	Common Stock
10	Retained Earnings
11	Dividends
12	Fees Earned
13	Salary and Commission Expense
14	Rent Expense
15	Advertising Expense
16	Automobile Expense
17	Miscellaneous Expense
18	Totals

Solution

	ACCOUNT TITLE	DEBIT	CREDIT
1	Cash
2	Accounts Receivable
3	Prepaid Insurance
4	Office Supplies
5	Land
6	Accounts Payable
7	Unearned Rent
8	Notes Payable
9	Common Stock
10	Retained Earnings
11	Dividends
12	Fees Earned
13	Salary and Commission Expense
14	Rent Expense
15	Advertising Expense
16	Automobile Expense
17	Miscellaneous Expense
18	Totals

Points:

0 / 19

Feedback

Check My Work

4. The trial balance is prepared from the ending balances of the ledger accounts. Be careful to put the debit balances in the Debit column and the credit balances in the Credit column. Remember the trial balance column totals should be equal.

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Final Questions

Shaded cells have feedback.

5. Assume that the April 30 transaction for salaries and commissions should have been $15,300.

(a) Why did the unadjusted trial balance in (4) balance? selector 1The debit equaled the credit in the original entry.

The debit equaled the credit in the original entry.

An addition error occurred in the trial balance totals.

A debit balance was entered as a credit balance on the trial balance.

The original entry was posted to the ledger two times instead of one.

Points:

1 / 1

(b) Journalize the correcting entry on April 30. Use page 20. (Note: You will not be required to post this entry to the ledger at this time.)

Question not attempted.

PAGE 20

JOURNAL

Score: 0/25

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT
1
2